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Anil Chhikara

Anil Chhikara is an entrepreneur at heart, believer in dreams, love incubating innovative tech startups, go-to-market specialist and passionate about setting & scaling up new businesses.

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Is Your Recruitment Process Missing the “H Factor”?

As the organisation grows, so does the pressure on its recruitment team to hire talent - FAST. At what stage do you give up tracking job applicants using spreadsheets, sticky notes and emails and switch to an Application Tracking System (ATS)? Do you even need one? Here’s an objective methodology of calculating your “H Factor” and decide if the load on your recruitment team deserves an ATS to bring in the right talent at the right time to fuel your growth.

Talent is the competitive advantage of the organization. So, getting the right talent is at the top of any CEO’s agenda today. In today’s era where there are so many choices for a person seeking a job, it takes a lot of effort to attract and hire the best talent. It takes even greater effort to hire the right talent! So it’s not a stretch to say that the hiring process makes or breaks a company. Recruiters play an instrumental role in hiring right talent to create this competitive advantage for the organization. But, are recruitment teams equipped with best tools and processes to do their job effectively?

Before we go any further, lets understand what the recruiters do on a daily basis. Recruiters could be meeting stakeholders (locally/globally) to understand requirements, write impactful content for job advertising on multiple job sites, social sourcing, screening hundreds of profiles, telephonic screening, release assesments, schedule candidates, follow-up with panel and candidates, host candidates at office, compensation negotiations and approvals, document collection, offer release and background verification, post offer engagement, status reports, Data analysis and meet panel /hiring managers/ leaders to make data driven decisions on the process.

Recruiters also engage consultants, HR Technology vendors, works on process improvements and projects, campaigns and weekend events etc.

Recruiter’s mailbox always have emails awaiting for response from hiring managers, panel, team, leadership, partners, candidates, other HR team members etc and everyone expects a response on priority!

If any of these activities are not managed well, it will have an adverse impact on time to hire/ quality of hire/cost per hire/ candidate & hiring manager experience/ brand reputation etc.

So how much is too much? What is it that determines that an org has to invest to optimize and save? We also pondered over these. With our vast experience in technology and talent space and with many interviews with senior recruiters, we decided to come up with a factor.

We call it the Hiring factor.

To get to the Hiring factor (H), we need to look at some of the parameters related to the recruitment

No of candidate engagements.

The scope of candidate engagements is from telephonic screening calls by recruiter till post offer engagement. Recruiters engage about 18-25 candidates in non-volume hiring companies and 25-40 candidates at any given point in time in high volume hiring companies. Let’s call this parameter as E.

Percentage of time spent by a recruiter for candidate engagements.

It’s important to deliver great candidate experience in hiring process. But, It demands lot of recruiter’s band-width to share information at different stages of selection process, promptly respond to emails/calls, complete selection process within stipulated time, share regular feedbacks etc. Most of the recruiters spend 30-40% of their time in delivering great candidate experience, let’s call this parameter as X.

Sourcing:

Recruiters do both Inbound and outbound sourcing through multiple channels. At any given point in time, the no of candidates screened by recruiter is 80-100 candidates. Let’s call this parameter as S.

Panel engagement

Recruiters spend lot of time working with business to understand talent needs, define and implement right implement right hiring strategy. Partner with business, review progress and do course corrections from time to time, work with panel to screen profiles, discuss feedback of the candidates etc. We have learnt that 20-30% of recruiter’s time is spent in engaging with business to deliver great hiring manager experience. let’s call this parameter as P.

Conversion ratio

Conversion ratio is a critical factor that influences time to hire, cost per hire and quality of hire. If your conversion ratios are high, then your recruitment process is optimized and efficient. Some of the factors that influence conversion ratios are input quality of profiles, leakages of pipeline in the selection process, selection bar and right selection process to make right hiring decisions. Different organizations may have different percentage of conversion ratio, we have leant most of the organizations have 20% -40% conversion ratio. Let’s call this parameter as C.

Recruiters:

Number of recruiters in an organization depends on the target hiring numbers per year. We have learnt that the target no of offers per recruiter in each organization varies from 4 offers – 6 offers per month in non-volume hiring scenario to 6-10 offers per month in volume hiring scenario. Let’s call this parameter as R.

Number of Job openings:

While the number of job openings for a company will vary from time to time, we have learnt that the no of job openings per recruiter at any given time is 10-15 job openings in non –volume hiring scenario to about 30-40 job openings in a volume hiring scenario. Let’s call this parameter as N.

We have arrived at the Hiring factor by looking at the total number of engagements per recruiter per conversion ratio.

H = (E + S) * (X + P) * N / (C * R)

The hiring factor, [also called internal as the HUWATS factor] is a number that we extensively use to determine which organizations would benefit from an intelligent ATS like HUWATS. The lower the H factor, the better your hiring process is and better chance of success.

Let’s take an example and calculate “H Factor”.

Assume an organization has 6 recruiters with each recruiter engaging about 25 candidates at any given point of time and screens around 80 profiles from all channels. If the recruiter spends 40% of their time in candidate engagement and 30% on panel engagement and manages 10 jobs at any given time, we can assume a conversion ratio of 10%.

6 recruiters, hence R= 6

25 candidates x 6 recruiters, so E=150

80 profiles x 6 recruiters, so S= 480

Candidate engagement is 40%, so X=0.40

Panel engagement is 30%, so P=0.3

10 job openings handled by 6 recruiters, so N=60

conversion ratio is 10%, so C=0.1

H = ((150+480)*(0.4+0.3)*60)/(0.1*6) = 44,100.

So what does this mean? The H Factor basically takes into account all the parameters in the recruitment process that has an impact on the load the recruitment department carries. Based on our research, you need to have an ATS if the H Factor is more than 10,000.

H factor more than 10,000 means that your entire recruitment process has lot of opportunities to and deliver more with less effort. In our example, with HUWATS, you can reduce the amount time recruiters need engage with candidates and panel. Hence reducing X and P by more than 50%. With great candidate experience, you can increase your conversion ratio. Lets assume that conversion ratio reaches 30%. The new H factor is 7350. The organisation now has the opportunity to handle more number of job openings without having to hire additional recruiters!

Hence using an ATS tool like HUWATS, you can scale your organization by keeping R constant and still increase candidate engagements (E) & pipeline (S) per recruiter, improve conversion ratios (C), reduce percentage of time spent for candidate (X) and hiring manager engagement (P) and yet deliver great experience and hire right talent at right time with right cost.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house


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